We propose a fully conservative and less oscillatory multi-moment scheme for the approximation of hyperbolic conservation laws. The proposed scheme (CIP-CSL3ENO) is based on two CIP-CSL3 schemes and the essentially non-oscillatory (ENO) scheme. In this paper, we also propose an ENO indicator for the multimoment framework, which intentionally selects non-smooth stencil but can efficiently minimize numerical oscillations. The proposed scheme is validated through various benchmark problems and a comparison with an experiment of two droplets collision/separation. The CIP-CSL3ENO scheme shows approximately fourth-order accuracy for smooth solution, and captures discontinuities and smooth solutions simultaneously without numerical oscillations for solutions which include discontinuities. The numerical results of two droplets collision/separation (3D free surface flow simulation) show that the CIP-CSL3ENO scheme can be applied to various types of fluid problems not only compressible flow problems but also incompressible and 3D free surface flow problems.